This item is from the 111th Congress (2009-2010) and is no longer current. Comments, voting, and wiki editing have been disabled, and the cost/savings estimate has been frozen.

H.R. 3936 would amend the Employee Retirement Income Security Act of 1974 and the Internal Revenue Code of 1986 to allow time for pensions to fund benefit obligations in light of economic circumstances in the financial markets of 2008.

Calculates the amount of any pension plan guarantee by the Pension Benefit Guaranty Corporation (PBGC) using the date of plan termination rather than the date of a plan bankruptcy filing.

Amends ERISA provisions relating to multiemployer pension plans to: (1) allow such plans to elect alternative amortization plans and valuation methods in 2009 and 2010 for investment losses; (2) extend by five years the funding improvement period for plans in endangered or critical status; (3) permit multiemployer plans to merge or form alliances with other plans; and (4) increase PBGC guarantees for insolvent plans to increase participant benefits.

Status of the Legislation

Latest Major Action: 12/8/2009: Referred to House subcommittee. Status: Referred to the Subcommittee on Health, Employment, Labor, and Pensions.

Points in Favor

(Log in to edit the wiki and be the first to show why the bill should pass!)

Points Against

(Log in to edit the wiki and be the first to show why the bill should not pass!)

Learn More

Cost per
:

Visitor Comments

RAH

It boils down to save current jobs and benefits for employees working for existing trucking companies(Teamster) or have the entire house of cards collapse. Carriers that have survived are now paying defined retirement pensions for people that never worked for them. Defined pension programs are nearly extict. Expecting companies to pay for people that never worked for them is not a sustainable plan. Easy math in this economy.

ST

The comment saying that defined benefit pension programs are nearly extict is wrong. I work for a compand I am a participant in a defined ebenfit plan. I also administer defined benefit plans and 412e plans for a living on a team of 5 other people who administer these plans. Each team member carriers a case load of about 80 plans. Also there are multiple jobs I can apply for here on benefits link to go to work for another company administering defined benefit plans. Defined benefit plans are alive and well especially in the small plan market.

CFD

Carriers who have assumed the liabilities for past service under defined benefit plans knew what their liabilities would be. No one could have predicted the market meltdown in 2008. I do not work for the Teamsters, however, I am enrolled in the same DBA for over 39 years. Our plan was funded at 109% of all future funding as late as 2007. Under the PPA of 2006 our plan would be required to add $5.6 milion over the next 7 years. $800,000 per year does not sound like a lot, however, with only 75 active employees it has a huge impact on everything from wages to benefits to the real possibility of plant closure. HR Bill 3936 could mean the difference between continued plant operations or turning the plan over to the PBGC and having no jobs. By the way we have a hard freeze taking effect on Dec.1

JOHN PORKCHOP

I WORKED FOR SMITH TRANSFER FOR 10 YEARS.THEY PUT MONEY IN CENTRAL STATE FOR ME FOR TEN YEARS.THEY WENT BANKRUPTED BUT MY MONEY WAS IN THERE. I WORKED FOR CONSOLIDATED FREIGHTWAYS FOR 13 YEARS. THEY PAID ON MY BEHALF 13 YEARS THEN THEY WENT BANKRUPTED. I WORKED FOR ROADWAY FOR 7 YEARS AND ALL TOTALED IS 30 YEARS OF PAID IN MONEY FOR ME. IT DOESN'T MATTER IF THE COMPANY NO LONGER EXIST. THEY GOT MY MONEY IN THERE. NO ONE HAS THE RIGHT TO REDUCE WHAT I WORKED SO HARD FOR.THE PENSION FUND DOESN'T PAY YOU ANYTHING UNLESS THERE WAS MONEY PAID EVERY WEEK IN YOUR NAME. AT THE END OF 30 YEARS PAID IN THERE SHOULD BE ENOUGH MONEY IN MY NAME TO PAY MY SMALL PENSION FOR LIFE.

happyltlguy

John your wrong, the money that goes into your fund is not for you. Your defined benefit is based on actuarial estimates, that is why the pension moves the benefit amount up and down every year, (accrual rate). the problem with thise plans is that they are like social security they work whent the number of people paying in is larger or growing more than the number of retirees. you eliminate 40000 YRCW employees and central states collapses under it's own weight. right now the "guaranteed" part of your benefits covered by PGC is 17.00 per year of service with both monthly and annual caps. the idea that your pension is "guaranteed" is a misleading statement. For as much as 401k's are attached by union folks, the accrual rate went down on all the funds this year and my 401k has earned 38% return on investment.

wb

I AM 60 YEARS OLD . 32 YEARS IN TRUCKING 12 WITH 1ST CO., 20 WITH 2ND CO. RETIRING JULY 1ST . CAN MY BENEFITS BE REDUCED AFTER I RETIRE ? MY FUND WAS 82% IN 2008 AND FELL TO 71% 2009. JUST GOT REPORT TODAY. FUND IS IN "SERIOUSLY ENDANGERED STATUS"

tjalaska

So what do all you cry babies on defined benefit plans want. You want the American tax payers to bailout your "defined pension plans" becuase of something your were promised in the past was wiped out by the economy crash. Well welcome to the real world, of what it fells like to have your life savings wiped out by a down economy but don't expect a bailout from me. Talk to your precious union bosses to see what they're going to do about it.

Kb2022

Tjalaska! So you use the word crybabys an feel that the government should not bailout the common working man? When the government hands out millions umm Billions sorry to the companies that mismanaged and in some cases (BANKS) were partly responsible for the economic crash! SO let me understand give BIG MONEY CEOs more money to screw there company up with.. but do not bail out the common working JOE!? The govs money isnt real anyway help the working man.. there isnt a thing you own that was not on a truck! REMEMBER THAT!